soni (service) (48 Points)
30 May 2008I want to know rates of Depreciation as per income tax act & indian company act. What is the main difference between income tax act & indian company act.I want to know, we always add dep (as per company act) in PGBP and less dep (as per income tax act)in PGBP.
Please guide me
sachin v
(abc)
(82 Points)
Replied 30 May 2008
Depreciation is ist charged as per company act then added back to Profit Before Tax as per Income Tax Act.
CA Naveen Kumar Agrawal
(Chartered Accountant / MBA)
(939 Points)
Replied 30 May 2008
there is difference in rates of Dep under IT Act & Comp. Act. u didnt specify for which asset dep. rates is required
whn u prepare Final A/cs under the provision of The Companies Act u have to use rates specified under the said Act, but when u file Income Tax return U have to calculate the Income using dep rates as specified under IT Act. pls refer schedule XIV of companies act for rates. and sec. 32 of the IT Act for the rates under inc. tax act
soni
(service)
(48 Points)
Replied 31 May 2008
Thank you very much Mr. Agrawal
Actually I want to know the rates of computer, furniture & vehicles as per company act & what method will apply S.L.M. or W.D.V..
Please reply me
bishan singh negi
(service)
(87 Points)
Replied 31 May 2008
FOR PARTNERSHIP FIRM YOU REQUIRE WRITTEN DOWN VALUE METHOD
CA Chaitanya
(PRACTISING CA)
(4283 Points)
Replied 01 June 2008
The rates of depreciation as per the companies act and Incone tax are different.
CA Chaitanya
(PRACTISING CA)
(4283 Points)
Replied 01 June 2008
Depreciation is allowed as per the rates prescribed under Income tax act.
CA Chaitanya
(PRACTISING CA)
(4283 Points)
Replied 01 June 2008
Hence it is added back wile computing the Income under income tax act.
CA Chaitanya
(PRACTISING CA)
(4283 Points)
Replied 01 June 2008
Refer income tax act for further information.
CA Naveen Kumar Agrawal
(Chartered Accountant / MBA)
(939 Points)
Replied 03 June 2008
Mam, since ur's is a partnership firm so provisions of companies act will not be applicale on ur firm. as u asked for the rate of dep. so these r hereunder (under both the acts)
PARTICULARS RATES AS PER IT ACT RATES AS PER COM ACT
COMPUTER 60% 20% WDV
FURNITURE 10% 18.10%WDV
VEHICLES 15%(NON COMMERCIAL) 25.89%WDV
BUILDINGS 05% 05%(OTHER THAN
FACTORY BUILDING)
PLEASE REFER THE ACT BEFORE APPLYING RATES. SINCE IT IS NOT POSSIBLE FOR ME TO EXPLAIN U WHOLE PROVISION THROUGH POST.
ANYWAY IT WUD B BETTER FOR U TO APPLY THE PROVISIONS OF IT ACT
CA Naveen Kumar Agrawal
mail id : navee_guru @ yahoo.co.in +91 9216408902
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
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